Check Your Understanding-Answers
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Why is it important for the buyers to indicate whether or not they intend to occupy the property?
- It can have an effect on such items as loan qualification, rates and terms.
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What's important to know about the Liquidated Damages paragraph?
- This paragraph must be initialed by both parties for it to apply.
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What happens if the parties do not initial the section of dispute resolution that deals with binding arbitration?
- If they don't initial it, binding arbitration will not be part of the agreement and they could choose to settle a dispute in court.
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Which section of the purchase agreement does not apply directly to the buyers and sellers?
- There is a final section where the escrow holder acknowledges receipt of the contract and agrees to act as the escrow holder in the transaction.
